The Colombian peso weakens against the dollar for the second consecutive day

The Colombian peso weakens against the dollar for the second consecutive day

The US dollar is being traded at the beginning of today at 3,921.07 Colombian pesos on average, which implied a change of 0.12% compared to the previous day’s figure of 3,916.35 pesos.

Considering the data from the last seven days, the US dollar has accumulated an increase of 0.2%; however, over the past year, it has still decreased by 15.42%. The Bank of the Republic of Colombia expects that by the end of 2024, the exchange rate will average 4,081 pesos per dollar. This is an encouraging forecast, far from the increases that the national currency reported between late 2022 and early 2023.

As for inflation, the forecasts are also positive. It is expected that the trend will be downward, reaching 5.61%, still far from the ideal of three percentage points but without approaching the 10% it reached in previous months.

However, this contrasts with the economic growth forecasts, as the central bank expects it to be 1.2% in 2024.

Like other currencies in the region, such as the Brazilian real or the Mexican peso, the Colombian peso has also been one of the most appreciated in emerging markets.

In just the first half of the year, the Colombian peso has experienced significant appreciation, driven in part by the weakening of the dollar globally. The greenback has been affected by global events such as Russia’s invasion of Ukraine and local economic decisions such as the measures implemented by the Federal Reserve to address inflation.

Locally, the Colombian economy has benefited from the slow discussions that Congress has had regarding the reforms proposed by President Gustavo Petro.

The Colombian peso is the legal tender currency in Colombia, usually abbreviated as COP, and its circulation is controlled by the Bank of the Republic of Colombia.

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ABOUT THE AUTHOR See More
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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